Economists Lower Selic Rate Forecast

Economists Lower Selic Rate Forecast

December 27, 2006

Brazilian economists have lowered their average forecasts for the country's benchmark lending Selic rate to 11.75% from 12% (the current level is 13.25%) by the end of next year, according to a survey carried out by the Central Bank. In general, most economists expect inflation to slow next year allowing the Bank to cut rates more than had first been anticipated. This is the first time in two months economists have lowered their year-end Selic forecast, according to Bloomberg.